Bankrupt Mining Facility Auction Relaunched, $80M Payout Linked to AI Data Centers
A New Jersey bankruptcy court has ordered the auction for a major Texas-based Bitcoin mining facility, owned by the bankrupt firm Poolin, to be relaunched. The move comes after disputes surrounding the previously selected buyer, Hut 8, necessitated a court-supervised process to ensure competitive bidding.
Hut 8's $180M Stalking Horse Bid Features Contingent Payouts
An affiliate of Hut 8 Corp. has been designated as the "stalking horse" or baseline bidder, setting the floor with an agreement valued at up to $180 million. The payment structure is multi-tiered:
- $100 Million Closing Payment: Paid upon deal completion for the core mining infrastructure.
- Up to $80 Million in Milestone Payments: This significant portion is contingent on a specific condition: the purchased power rights must be utilized for non-mining purposes.
The $80 million can only be unlocked if the buyer secures long-term leases or executes property transfers for data centers supporting artificial intelligence (AI), high-performance computing (HPC), or cloud services—all powered by the site's electricity. This ties the asset's full value to the emerging "AI-plus-power" business model.
Tight Auction Timeline Set, Bids Must Surpass Previous Offer
The court has established an accelerated schedule. Competing bids must be submitted by noon on October 1, with the court-supervised auction slated for the morning of October 2. This allows limited time for rival bidders to conduct due diligence.
The new baseline bid of $180 million is notably higher than a separate $140 million deal Poolin had selected earlier in September, suggesting court oversight may drive a higher valuation. Poolin filed for Chapter 11 bankruptcy protection on July 22, and the sale of this Texas facility is a pivotal part of its restructuring efforts.